What will a NE cracker project could resemble. ChevronPhillips begins construction of $6b world-scale cracker/pep. Spent "years" considering
ChevronPhillips begins construction of world-scale Texas ethane cracker-polyethylene project-$6b price tag.
Msg 136746 of 136762 at 4/3/2014 1:51:09 PM iv bry board by Sukes
Construction of Chevron Phillips Chemical's massive new ethane cracker in Baytown, Texas, has begun. The facility will be the first of its type in the U.S. in a decade and is scheduled to be operational by 2017. Crews are preparing a site at the company’s Baytown facility for a massive new ethane cracker, which company officials say will be the first new major facility of its type built in the U.S. in a decade. The investment, which officials say will contribute to the creation of about 400 jobs, represents a huge step for the company that’s jointly owned by Chevron and Phillips 66. (and 10,000 engineering and construction jobs.) “This is a big deal for us — $6 billion is a big project for a company with $10 billion in assets,” said CEO Peter Cella. The endeavor is the first half of a two-pronged project the company, based in The Woodlands, spent years considering before giving it final approval in October. The ethane cracker itself is a massive piece of equipment used to transform ethane, a component of natural gas, into ethylene, a component used to make plastics. Cella described the sheer size of the cracker: a footprint the size of nearly 50 football fields, with 350 miles of piping; 1,600 miles of cable and 140,000 tons of concrete. The other component of the endeavor, in nearby Old Ocean, consists of two polyethylene units, which convert ethylene into polyethylene pellets that can be sold, melted and formed into a variety of industrial and household plastics. The entire project is slated to come online in 2017. (Chevron Phillips will construct the ethane cracker at its Cedar Bayou complex in Baytown, with a capacity to produce 3.3b pounds of the ethylene per year 9m lbs/d. The polyethylene facilities will produce 1.1b pounds per year 9m lbs/d.
There's a VERY big difference between the ChevronPhillips and Shell cracker projects: ChevronPhillips is an active producer of a full line of polyethylene products,too. Shell got out of polyethylene plastics eight years ago...So, it's easy for ChevronPhillips to build the required cracker and polyethylene units. Shell has to decide a) which other firm is the downstream polyethylene producer or b) who does it get polyethylene technology from to go back into the Polyethylene business..this is a BIG problem as you cannot ship ethylene anywhere except next door...too dangerous. Meanwhile, NOVA up in Sarnia which is also in the polyethylene business BIGTIME is cranking out ethylene and then high density and low density polyethylene based on low cost ethane from Mariner West and making money like crazy!! Shell is at least four or five years from commercialization if it decides to go forward.